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Generation Y Is Ready to Buy, Technology Will Help Sell Them
 With Generation Y beginning to enter the home buying market, home builders must re-think how to market and sell to them or risk losing them to the competition.
Generation Y home buyers ― whose leading edge is turning 27 this year — generally have more spending power than preceding generations at this stage in their lives because they are well-educated and have higher starting salaries out of college.
Generation Y consumers understand that this is a prime time for them to buy because of market conditions and that, potentially, they can have a mortgage payment that is less than what they would pay in rent. In addition, research indicates that more single females of this generation are buying homes because of optimal market conditions and their improved financial situation.
When shopping for a new home, Generation Y consumers want to live close to where they work and socialize but also be near friends and family. Most prefer living in the city or at least in close proximity.
Research also indicates that this generation of home buyers is willing to spend more money on a new home in order to get exactly what they want.
Generation Y Wants Quick, Personalized Answers
If home builders want to reach out to these potential customers, they must realize how important a role technology plays in their lives. Generation Y grew up with technology and rely on it to stay informed, especially when they’re making serious purchasing decisions.
Generation Y relies on e-mail, the Internet, PDAs, BlackBerrys and other electronic devices and, for many, these technologies are their preferred method of communication. In addition, studies show that eight out of 10 Generation Y home buyers use the Internet to research their home choices.
Once they have narrowed their choices, they expect their requests for more information to be answered quickly and for those answers to be personalized ― they don’t want to wait a week or two for a generic response. According to the technology and market research firm Forrester Research, based in Cambridge, Mass., Generation Y consumers will lose interest quickly if those trying to reach them don’t value quick communication.
Customer Relationship Management Levels the Playing Field
So how does a home builder level the playing field with Generation Y?
Home builders looking to sell to this generation should utilize a customer relationship management (CRM) system with a strong marketing automation suite that can deliver detailed, personalized information in a timely fashion, nurture prospects until they turn into hot leads and collect data to build customer profiles.
Using a CRM tool, home builders can have personalized information sent automatically to potential buyers based on the questions they answer in a survey, such as what they are looking for in a home, what is their timeframe for buying and what kind of amenities are most important to them.
Generation Y consumers will appreciate getting a tailored response to their inquiries. This will also make them more likely to provide additional information about their buying preferences.
Armed with this type of information — especially the buying timeframe — a home builder’s sales team can be instantly alerted to hot leads, allowing them to launch follow-up programs to get these prospects into the office.
Marketing Automation Builds Rapport
Responding quickly can be an important differentiator when reaching out to buyers, especially those using Web sites like Move.com or NewHomeSource.com that feature multiple home builders.
Using marketing automation and collecting buyer data are effective ways to build rapport, but it doesn’t end there. Time is very valuable to Generation Y and they want to use technology to create wish lists for the communities they are interested in and also for the design of their dream home.
Builders can use the Web and surveying to educate buyers about communities and assist them in identifying a home that meets their needs. Providing a list of communities that fit their needs lets home buyers narrow down their wish list and spend more time checking out the communities that are right for them.
By the time they actually visit the community, they already have a good idea of what they want in their home. The sales associate also has a much better understanding of their customers’ needs because of the information gleaned online and is much better prepared to offer effective recommendations.
Home builders can also use Web-based technology to provide convenience and personalization in the design process via a virtual design center. The center is accessible via a Web browser so home buyers can actually start looking at the available options for their homes. Enabling them to start designing their dream home also gives them more ownership and a connection to the home, sometimes even before they walk into the community.
The virtual design center provides this generation with the ultimate in convenience because it can be accessed 24 hours a day, seven days a week, and enable them to store and update their preferences. In the end, they will be happier with their decisions because they’ve had more time to think them over, which, for the builder, can reduce cancellations.
After the house is sold, home builders can continue to communicate with customers via e-mail or a Web portal about things like warranty information, maintaining the connection with the home buyer and encouraging referrals.
Through a deeper knowledge and use of Web-based technology so central to this generation’s buying habits, home builders can provide a better, more personalized customer experience, achieve a faster sales cycle, gain a deeper understanding of customers’ needs, sell more options and build stronger, more profitable relationships.
Steve Lewkowitz is the home building and real estate professional services director for CDC Software’s Pivotal CRM, a leading line of customer relationship management solutions. For more information, e-mail Lewkowitz, or visit www.pivotal.com/homebuilders.
 NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably
Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more.
Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources.
Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed.
Build a Profitable Relationship
Creating positive partnerships with brokers can enhance business and boost sales. Builders can learn how to profit from alliances with brokers by taking the “Increased Profits Through Effective Builder-Broker Cooperation” course from The NAHB University of Housing.
The course shows how to use common interests to connect with brokers and how to choose compatible sales professionals.
Find out where upcoming courses are being held here, or call 800-368-5242 x8154 for more information.
 Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown
What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn.
To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here.
To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar.
For assistance, call the NAHB Member Service Center at 800-368-5242.
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